USAID Deputy Assistant Administrator for Africa (DAA) Julie Koenen said the bilateral deal outlines US commitment to back Somali efforts to bounce back on its feet.

"The U.S government is committed to support the federal government of Somalia's efforts in achieving stability through good governance, economic recovery, education and health," said Koenen in a statement by USAID.

Planning Minister Gamal Hassan termed the deal as landmark saying his ministry will be co-authorize all US development assistances to the country.

"Today I had the honor of co-signing a landmark development agreement (DOAG) with the US gov't (USAID). The project will be the first in over 30 years and worth over $300 million. From now on, @MoPIED_Somalia years will co-authorize all US dev't assistance to Somalia. Another milestone in the Somali-US relations," said Hassan in a tweet.

Since 2011, USAID has provided over $1.3 billion in humanitarian assistance and $328 million in development assistance to the people of Somalia, statement reads.